Water & Waste | Article
Public-private partnerships and investments in innovation : the influence of the contractual arrangement
09 March 2016
BY: ROUMBOUTSOS Athena, Stéphane Saussier
Construction management and economics, 2014, Vol. 32, No. 4, pp. 349-361
Public-private partnership (PPP) policy strategies emphasize the ability of PPPs to foster innovation. Evidence reported in literature supports less the inherent quality of PPPs for innovation and more the importance of contributing factors. The contractual agreement is the setting of these factors. In this context, an analytical model based on behavioural economics is presented, with boundary conditions reflecting various contractual configurations. The analysis indicates why, from a purely economic point of view, the private party in a PPP arrangement has an incentive to invest in low risk incremental innovations, which impact on, and positively effect, cost savings during construction and operation. It is also identified that further innovations are hampered by the ability to produce verifiable improvements correlated to performance. Findings contribute to the subject of public procurement for innovation in PPPs and support public authorities regarding the rationale, potential and necessary framework conditions for the use of public procurement as an innovation policy tool.
logo cadmus Read it on Cadmus


Working Paper
In this paper, we discuss the implementation of Capacity Remuneration Mechanisms (CRM) in the European Union (EU). We first illustrate that the costs of CRMs in the EU are significantly [...]
Additionality is a key requirement for the renewables based electricity to be used by electrolysers to produce renewable hydrogen. Additionality could be defined as the requirement that renewables-based electricity used [...]
Working Paper
China has always upheld multilateralism and has advocated the use of multilateral mechanisms to jointly address global climate change issues. This paper discusses what China does and why, and how [...]
Working Paper
Interoperability in the context of smart electricity metering is high on the European policy agenda but its essence has been challenging to capture. In this paper, we look at experiences [...]
Around 75% of European cargo transport operations in terms of ton-kilometers are performed by trucks, which, in turn, entail massive environmental and societal impacts. Prior to the COVID-19 pandemic, road [...]
Green LNG is a newly emerging trend in the natural gas industry which has been incentivised by the decarbonisation process. This new line of thinking encourages LNG suppliers to offset [...]

Join our community

To meet, discuss and learn in the channel that suits you best.